Tags: illumina | roche | pharma | M&A

Illumina Rejects Roche’s Sweetened $6.7 Billion Bid

Monday, 02 Apr 2012 05:17 PM

Illumina Inc., the U.S. maker of gene-mapping tools, urged shareholders to reject Roche Holding AG’s increased hostile takeover offer, saying the bid “dramatically undervalues” the company.

Roche raised its offer last week by 15 percent to about $6.7 billion, or $51 a share, after Illumina rejected the company’s original bid. Investors have until 6 p.m. New York time April 20 to tender their stock, Basel, Switzerland-based Roche said on March 29 in announcing the new cash offer.

Illumina’s technology may help Roche, the world’s biggest maker of cancer drugs, tailor medicines to individual patients. Illumina’s shares, which have traded above Roche’s increased bid since it was announced, fell 2.4 percent to $51.37 at the close of New York trading Monday.

“The market is indicating the price is getting close,” Les Funtleyder, a New York-based health strategist and portfolio manager at Miller Tabak & Co., who owns Illumina shares, said in an interview.

The increased offer “does not adequately reflect Illumina’s singular position in an industry poised for extraordinary growth,” Illumina Chief Executive Officer Jay Flatley said in a letter to Roche Chairman Franz Humer. “We are advising our stockholders that your revised offer is not in their best interests and not to tender any shares,” Flatley said in the letter, which was distributed in a statement today.

Illumina shareholders will decide April 18 whether to replace board members with Roche nominees, which would clear the way for talks from both sides. Illumina today urged investors to support the company’s directors.

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2012-17-02
Monday, 02 Apr 2012 05:17 PM
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